Merkel makes U-turn on Grexit?

Angela Merkel wants to stop Athens leaving the euro at any cost – even it means manipulating the figures in the upcoming troika report – as a Greek exit would jeopardize her chances of reelection, according to the German newspaper Der Spiegel.

Recently, whenever Angela Merkel has been asked what she plans to do about Greece, she replies with the words, “We are waiting for the troika report.” The troika report, a fact-finding mission to Greece consisting of the European Commission, the International Monetary Fund (IMF) and the European Central Bank (ECB), was supposed to submit its findings at the end of August, but Greece’s fate is now not expected to be decided until November; after the US Presidential elections.

According to Der Spiegel, Merkel needn’t bother waiting for the troika’s conclusion, as in fact she has already made up her mind.

Until recently Merkel was prepared to drop the debt-ridden Balkan nation if it failed to meet its requirements, but now regards a Greek departure from the euro as involving too many risks. 

Source and full story: Russia Today, 10 September 2012

Tom Sullivan